Why women are enthusiastic about Birkin bag by Hermes Research Paper - 1

Why women are enthusiastic about Birkin start by Hermes - Research Paper lessonIt is included in Forbes magazines Most Extravagant Handbags list. Bag prices range from US$6,000 to US$120,000 depending on the materials used and the craftsmanship that goes with it (Prabhakar, 2007). So, why do women go gaga over a Birkin bag? What strategy does Hermes adopt making it very successful all these years despite tough contender and the worldwide fiscal crisis? Where lies the mystery of the Hermes Birkin?According to Hermes CEO, Patrick Thomas, Hermes has no desire to become a masstige (a mass manufacturer of prestige goods) (Wright, 2009). Our strategy will be a strategy of value, not a strategy of script we are not in the mass luxury (Agathe, Imadec-Bentata & Zimmerman, 2009, p. 8). They say no to short-term profit thus, eventide in times of recession, few discounts are offered (Xie, n.d.) They cannot compromise the quality and the finishing of the product just to make up their sales (Wright, 2009). Hermes strategy is centered on the respect of the legacy of the luxury brands history, its heritage. (Xie, n.d.) Their perpetration is the pursuit of excellence. They adopt a model of scarcity to preserve its prestige and integrity. They do not transfigure their strategy according to the state of the economy (Wright, 2009). They stick to the rule of luxury, that is, even in the worst financial crisis the world will still have rich people who would like to hold on to single(a) items that can hold value such as a Birkin bag (Xie, n.d.). A purchase of a Birkin bag is viewed not an expense but an investment that could last for 40 years and whose price could go up to more than double as the years go by (Wright, 2009).One of the marketing techniques industrious by Hermes is to keep a waiting list with high-profile customers such as Hollywood stars. They also launch a Reserved sign on their display bag and they limit the number of Birkin sold to from each one customer for every purchase